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October 15, 2023, 05:30:01 PM |
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Hello there! I'm writing this article because I was once in your shoes, not having a clue about what "block size" meant in the Bitcoin world. But I've learned a thing or two, and I'm here to share my newfound knowledge in simple terms. So, let's explore Bitcoin's block size together.
What is Block Size in Bitcoin?
First, let’s get into the nitty-gritty. In the Bitcoin world, “block size” is the maximum number of bytes that can be stored in a single block on the blockchain. What is a blockchain? A blockchain is a digital ledger in which all Bitcoin transactions are recorded. Each page in the blockchain is a block. The block size is the page’s space limit for each transaction.
The Original Block Size Limit
When Bitcoin first came to life, the block size was set at 1 megabyte (MB). This limit wasn't just random; it served a couple of important purposes:
Security: The block size limit of 1 MB acted as a watchdog on the network. It prevented anyone from flooding the network with large numbers of transactions at the same time, which could lead to issues.
Decentralization: Maintaining a small block size was about fairness. It was about allowing everyday people (like you and me) to participate in the Bitcoin ecosystem. If blocks were too large, it would only be possible for big players with a lot of computing power to participate in the network, which would be unfair.
Debate about the size of large blocks in Bitcoin
Now comes where it gets interesting: the block size debate.
Proponents of Larger Blocks: Some argue that a larger block size would increase the speed and cost of Bitcoin for everyday transactions. A larger block size would allow for more transactions to be processed, making Bitcoin more accessible for everyday transactions such as buying a cup of coffee.
Critics of Larger Blocks: On the other hand, there are those who fear that increasing the size of blocks will result in centralized control. Simply put, it would mean that a few big players would have control over everything, which is not what Bitcoin is about.
Segregated Witness (SegWit) and Other Solutions
To solve this conundrum, clever people came up with an elegant solution: Segregated Witness (or SegWit, for short). Instead of increasing the block size, SegWit decouples transaction data from signature data, allowing more transactions to fit in the same tiny block. As a result, transactions become faster and cheaper.
The Bitcoin Cash Fork
The Bitcoin community split sharply over this block size controversy. Due to disagreements among some, a new cryptocurrency named Bitcoin Cash (BCH) was created. The block size limit was raised by Bitcoin Cash to 8 MB, enabling for more transactions per block.
The Ongoing Debate and What's Next for Bitcoin
Bitcoin's block size is still a topic of discussion. Bitcoin's speed, cost, and accessibility can still be improved while maintaining its security and fairness.
So, to put it simply, the Bitcoin block size determines how many transactions can be completed in a block. It plays a crucial role in how Bitcoin functions and evolves. This block size argument will influence Bitcoin's future, making it more user-friendly while adhering to its fundamental principles, as technology advances.
Since I'm a beginner, I didn't include any images.
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